Slide 1: PGNiG Group results for Q1 2016
PGNiG Group results for Q1 2016 May 9th 2016
Slide 2: Agenda
1. Performance drivers 2. Financial highlights Q1 2016 3. PGNiG Group EBITDA by segments Agenda 4. Segment performance Exploration and Production Trade and Storage Distribution Generation 5. Operating expenses 6. Efficiency Improvement Programme 7. Appendices
Slide 3: Performance drivers
Performance drivers In Q1 2016, 9-month average of crude oil Noticeable impact of recent Stronger USD and EUR against PLN yoy prices down 44% year on year and down 6% qoq periods' tariff reductions on PLN 4,5 4.36 USD/bbl gas selling prices; Average 4.19 100 96 +4.1% regulated price down 11% year -4
Slide 4: Financial highlights Q1 2016
Financial highlights Q1 2016 Major impact of falling [PLNm] Q1 2015 Q1 2016 % commodity prices, gas market Revenue 12,495 10,980 (12%) liberalisation and the Efficiency Operating expenses (excl. D&A) (10,169) (8,587) (16%) Improvement Programme on EBITDA 2,326 2,393 3% operating performance Depreci
Slide 5: Business segments – EBITDA Q1 2016
Business segments – EBITDA Q1 2016 Exploration and Production Contribution [PLNm] Q1 2015 Q1 2016 % • Revenue from sales of oil and condensate to Group's result down PLN 120m or 25% year on year. Exploration and Production 878 619 (30%) 26% Trade and Storage Trade and Storage 619 660 7% 28% • Lower
Slide 6: Segments – Exploration and Production
Segments – Exploration and Production Negative impact of low oil [PLNm] Q1 2015 Q1 2016 % prices partly offset by higher sales volumes Revenue 1,217 1,045 (14%) Operating expenses (excl. D&A) (339) (426) 25% EBITDA 878 619 (30%) Depreciation and amortisation expenses (317) (286) (9%) EBIT 561 333 (
Slide 7: Segments – Trade and Storage (1/2)
Segments – Trade and Storage (1/2) Margin on E gas fuel up 7%, [PLNm] Q1 2015 Q1 2016 % with operating margin on the product up 2% in Q1 2016 Revenue 11,190 9,619 (14%) Operating expenses (excl. D&A) (10,571) (8,959) (15%) EBITDA 618 660 7% Depreciation and amortisation expenses (40) (61) 55% Comme
Slide 8: Segments – Trade and Storage (2/2)
Segments – Trade and Storage (2/2) PGNiG Group gas sales volumes up 0.3 bcm in Q1 2016, with volumes of gas sold Segment's performance driven by PGNiG SA on the Polish Power Exchange up 0.5 bcm bcm by falling purchase and selling 10 7.7 PGNiG Group's gas sales volumes 6.8 8.0 prices and lower averag
Slide 9: Segments – Distribution
Segments – Distribution A 7% increase in distribution [PLNm] Q1 2015 Q1 2016 % volumes with operating costs under control contributed to Revenue 1,316 1,397 6% improved segment Operating expenses (excl. D&A) (795) (639) (20%) performance EBITDA 521 758 45% Depreciation and amortisation expenses (21
Slide 10: Segments – Generation
Segments – Generation Solid operating performance [PLNm] Q1 2015 Q1 2016 % supported by heat sales revenue growth Revenue 688 742 8% Commentary: Operating expenses (excl. D&A) (378) (380) - • Revenue from sales of heat up 12%, to PLN 0.49bn, with volumes up almost 7% EBITDA 310 362 17% and a higher
Slide 11: Marked decrease in the cost of gas sold in Q1 2016
Marked decrease in the cost of gas sold in Q1 2016 Cost of gas sold and other raw [PLNm] Q1 2015 Q1 2016 % materials and consumables used down, driven by lower Fuels for heat and power generation (274) (282) 3% fuel prices Other raw materials and consumables used (154) (113) (27%) Employee benefits
Slide 12: EIP - Over 35% planned gains for 2016-2018 achieved in Q1 16
EIP- Over 35% planned gains for 2016- 2018 achieved in Q1 2016 The Programme aims to Programme objectives: permanently reduce the manageable cost base across • To set efficiency improvement targets for the individual segments and entities within the PGNiG Group and to define related benefits to qual
Slide 13: Contact details
Contact details Release dates for periodic reports Aleksandra Dobosiewicz Department Head Phone: +48 22 589 46 71 Mobile: +48 665 004 847 Fax: +48 22 691 81 23 12 9 Email: aleksandra.dobosiewicz@pgnig.pl August November Weronika Zając H1 2016 report Q3 2016 report Investor Relations Specialist Phone
Slide 14: Appendices
Appendices: Changes on the Polish gas market Gas trading and retail sales Production and sales volumes Debt and sources of financing Statement of financial position, cash flow, financial ratios and headcount
Slide 15: Changes on the Polish gas market
Changes on the Polish gas market Gas market deregulation is Gas sales volume (mcm) Q1 2015 Q1 2016 % affecting PGNiG's share in imports and sales structure Total PGNiG Group 7,721 7,986 3% Commentary: PGNiG SA 4,342 4,612 6% • Since August 1st 2014, the PGNiG Group's gas sales volumes have included
Slide 16: Gas trading and retail sales after August 1st 2014
Gas trading and retail sales after August 1st 2014 Gas sold to key customers: above 25 mcm annually 4.6 bcm in 2014 4.3 bcm in 2015 Production Direct sales PGNiG SA 0.93 bcm in 2014 0.72 bcm in 2015 Gas Polish Power Exchange purchase 3.74 bcm in 2014 8.09 bcm in 2015 PGNiG Obrót 6.7m customers Polis
Slide 17: Production and sales volumes
Production and sales volumes NATURAL GAS PRODUCTION, PGNiG Group (mcm) Q1 2016 FY 2015 Q4 2015 Q3 2015 Q2 2015 Q1 2015 FY 2014 Q4 2014 Q3 2014 Q2 2014 Q1 2014 HIGH-METHANE GAS (E) 509 2 031 508 515 507 501 1 876 440 475 482 479 including in Poland 359 1 458 369 359 362 367 1 457 368 361 362 367 incl
Slide 18: Debt and sources of financing
Debt and sources of financing Financing sources (as at March 31st 2016) Strong financial position PLNm 10000 available used 8000 6000 4000 8,500 2,000 2,990 2000 200 0 2,500 1,000 1,300 2,130 0 Guaranteed notes Domestic notes (2017) BGK programme (2024) Reserve based loan (2022) Eurobonds (programme
Slide 19: Statement of financial position, cash flows, financial ratios and headcount
Statement of financial position, statement of cash flows, financial ratios and headcount Group's statement of financial position (as at March 31st 2016) Headcount (at year end) PLNm thousand 60 000 Other segments Generation Distribution Trade and Storage Exploration and Production 40 Non-current Cur